This downloaded copy is unofficial. Check www.mun.ca/policy for the official version.

Memorial University of Newfoundland

  Memorial University of Newfoundland

Tangible Asset Administration

Approval Date: 2017-05-11

Effective Date: 2018-03-06

Review Date: 2021-05-11

Authority:

The Vice-President (Administration and Finance)

Purpose

To enable Memorial University of Newfoundland to effectively manage its Tangible Assets and provide Units with procedures for the tracking, safekeeping, reallocation and appropriate disposal of those assets.

Scope

Tangible Assets of Memorial University of Newfoundland and those members of the University who purchase, construct, use, manage, or otherwise have access to the University’s Tangible Assets.

Definitions

Asset Administrator — This role is normally carried out by the employee in the Unit who has responsibility for financial matters. This role is responsible for ensuring measures are in place within the Unit for safeguarding Tangible Assets, for reviewing, maintaining and updating the Unit's Tangible Capital Asset property report and corresponding with FAS to ensure necessary updates are made to Tangible Capital Asset records. This is a functional description, not a position title.

Associate — A person: who is related to a University employee by blood or adoption, or is or has been related to the employee by marriage or common-law marriage; or with whom a University employee has or has had in the previous five years a financial, intimate, other close or substantial professional relationship.

Campus Facilities Management — Refers to the unit(s) at each campus responsible for management of facilities and capital work.

Capital Lease — A lease arrangement where in accordance with generally accepted accounting principles (GAAP), the leased asset must be recorded as a Tangible Capital Asset.

Electronic Device — Any device that is powered and is used to access, process or store University data including any information technology storage media run by, or attaching to, a device.

FAS — Department of Financial and Administrative Services.

Financial Management System — The software solution and methodology that the University uses to record, manage and report on its income, expenses, and Tangible Assets.

Permanent Tag — A permanent Tangible Capital Asset number created by FAS. This number is assigned to each Tangible Capital Asset and is printed on a tag that must be attached to the Tangible Asset, where it can be easily seen. Only one tag is issued for the Tangible Capital Asset, regardless of the number of components it may have.

PO — Purchase Order.

Surplus Asset — A Tangible Asset that has reached its optimal benefit for reasons such as wear, obsolescence, or changes in technology, teaching methods or Unit requirements.

Tangible Asset — Anything owned by the University that has a monetary value and includes Items such as buildings, property, furniture, equipment, computers, electronic devices, machinery, instruments. For purposes of this policy, financial assets, supplies and inventory, artwork, library holdings, and archival collections are excluded. For administration of artwork, see the University's Art Collection policy and procedures.

Tangible Capital Asset — Those Tangible Assets which are of a continuing or long-term use in the conduct of the University's operations and which must be recorded in the University's financial records as capital to meet financial reporting requirements and for insurance purposes. See Schedule of Tangible Capital Asset Determinations.

Tangible Capital Asset Inventory Listing — A listing of items recorded as Tangible Capital Assets by the University.

Tangible Capital Asset Threshold — The dollar value at which a Tangible Asset is deemed to be a Tangible Capital Asset. See Schedule of Tangible Capital Asset Determinations.

Unit — Academic or administrative unit as defined in the University Calendar.

Unit Head — Deans, Department Heads, Division Heads, Heads of Schools, Directors, Executive Directors, University Librarian, University Registrar and other senior administrators at a comparable level; Associate Vice-Presidents and Vice-Presidents, as applicable.

University — Memorial University of Newfoundland.

University Premises — Any building or property that the University owns, leases or occupies for its operations.

Policy

1. GENERAL – Management of Tangible Assets
1.1 Stewardship and Ownership of Tangible Assets

Tangible Assets are fundamental to achieving the University's mission. The University is responsible for stewardship of its Tangible Assets. Ownership of Tangible Assets rests with the University, whether the Tangible Asset was purchased (regardless of the source of funds), procured on a Capital Lease or donated. Tangible Assets normally should be used only for University-related activities.

Units are responsible for managing Tangible Assets in accordance with this policy and related procedures, other applicable University policy and procedures and applicable legislation. In particular for the procurement and operating of University vehicles, see also the Vehicles – University Owned or Leased policy.

The Asset Administrator is the custodian of records related to the administration of Tangible Assets and must manage those in accordance with the Information Management policy and procedures. The Asset Administrator is responsible for ensuring that a Tangible Asset containing University information or Memorial–licensed software has that University information and software removed when the Tangible Asset is transferred, moved or declared a Surplus Asset, in accordance with the Data Removal, Information Management and Privacy policies and procedures.

1.2 Safeguarding of Tangible Assets
The University is responsible to take appropriate measures to maintain and safeguard all Tangible Assets. Members of the University and Units who have a responsibility for the use and care of Tangible Assets must ensure that adequate security measures are in place to prevent theft, abuse, misuse and loss, regardless of whether the Tangible Assets are used on or removed from University premises. Any suspected theft or loss of Tangible Assets must be reported immediately to the applicable campus enforcement and patrol office. For suspected theft or loss of a Tangible Asset containing University information see also the Procedure for Reporting Suspected Security Incidents. The University carries insurance policies for the protection of Tangible Assets, as per the Insurance Coverage - Property and Liability policy.

1.3 Surplus Assets
The Unit Head has the authority to deem a Tangible Asset as a Surplus Asset. Disposal of the Surplus Asset must occur in a manner that ensures a fair, transparent and sustainable process.

Options for disposal include:

All applicable options should be explored, in consideration of the type of Surplus Asset and the needs of the Unit.

Campus Facilities Management oversees the processes relating to disposal of Surplus Assets.

No disposal action may result in an employee of the University or an Associate realizing any personal gain through acquisition of the Surplus Asset or share of proceeds obtained from its disposal. See the Conflict of Interest policy.

Disposal of Surplus Assets purchased with research grants or contract funding must follow the applicable research grant or contract guidelines for disposal of those Surplus Assets, including distribution of any proceeds obtained from its disposal. In the event that no stipulations are in the applicable contract, University policy applies.

Disposal of Surplus Assets that were donated must follow any applicable terms of the gift agreement. In the event that no stipulations are in the agreement, University policy applies.

2. Tangible Capital Asset Administration
In addition to the authority, roles, responsibilities and procedures outlined above for Tangible Assets, there are specific responsibilities associated with administration of Tangible Capital Assets, to ensure they are identified, tracked and amortized over their useful life. Members of the University involved in the acquisition and administration of Tangible Capital Assets must do so in accordance with the following. See also the Tangible Capital Asset Handbook and in the case of vehicles, see the Vehicles – University Owned or Leased policy.

2.1 Vice-Presidents Council
The authority to set and revise the Schedule of Tangible Capital Asset Determination, including the Tangible Capital Asset Threshold rests with Vice-Presidents Council. The details are available here: Schedule of Tangible Capital Asset Determinations

2.2 Units
At the time of procurement of a Tangible Asset, the Unit must determine whether the Tangible Asset falls within the definition of a Tangible Capital Asset. If so, the Procedure for Procuring Tangible Capital Assets must be followed.

If a Tangible Capital Asset has been donated to a Unit, it must be added to the Tangible Capital Asset inventory system at the fair market value of the Tangible Asset at the time it was received. See the Gift Acceptance policy and the Procedure for Appraising and Accepting Outright Gifts.

Units must ensure records are updated when there are changes, transfers or deletions of their Tangible Capital Assets and must periodically check inventory for accuracy. See Procedure for Administering Tangible Capital Assets.

2.3 Moving Tangible Capital Assets
Through the procurement process, each Tangible Capital Asset is assigned a location where it will reside and be used, which may be on or off University premises. Normally, the Tangible Capital Asset should remain at the location originally assigned to it. Moving a Tangible Capital Asset requires the following:

a. If the move is to a location other than the assigned location yet within an area controlled by the Unit, the location of the Tangible Capital Asset must be updated. See Procedure for Administering Tangible Capital Assets.
b. If the move is to another Unit of the University, the move must be appropriately authorized. See the Transfer of Tangible Capital Asset section of the Procedure for Administering Tangible Capital Assets.
c. If the move is to a location other than University premises, the removal must be appropriately authorized. See Procedure for Removing a Tangible Capital Asset from University Premises.

Lending Tangible Capital Assets to an entity external to the University requires a written contract or loan agreement. See the Contract Administration policy and procedures. If the Tangible Capital Asset was funded by a research contract or grant, any terms or conditions associated with that funding must be followed.

2.4 Financial and Administrative Services
FAS is responsible for oversight of the University's Tangible Capital Assets program, with the objectives of ensuring:

Related Documents

Tangible Capital Asset Handbook
Schedule of Tangible Capital Asset Determination
Conflict of Interest policy
Contract Administration policy 
Data Removal policy
Electronic Data Security policy
Gift Acceptance policy
Information Management policy
Insurance Coverage – Property and Liability policy
Privacy policy 
Purchasing policy
Trust Funds policy
Tangible Capital Asset Addition Form
Tangible Capital Asset Transfer Change Delete Form
Declaration and Disposal of Surplus Property Form 
Authorization for Removing a Tangible Capital Asset from University Premises Form 

Procedures

For inquiries related to this policy:

Department of Financial and Administrative Services 709-864-8985

Sponsor: Vice-President (Administration & Finance)

Category: Finance

Previous Versions:

There is at least one previous version of this policy. Contact the Policy Office to view earlier version(s)

Approval Date 2017-05-11   Effective Date 2017-06-01

Procedure for Administering Tangible Capital Assets

Approval Date: 2017-05-11

Responsible Unit: Department of Financial and Administrative Services

Transfer/Change/Delete

1. A Tangible Capital Asset transfer occurs when a Unit agrees to give a Tangible Capital Asset to another Unit including at a different University campus or a Unit transfers a Tangible Capital Asset to a new location within the Unit.

2. A Tangible Capital Asset change occurs when a Unit identifies incorrect information on the Tangible Capital Asset Property Report.

3. A Tangible Capital Asset deletion occurs when a Unit has a Tangible Capital Asset on its Tangible Capital Asset Property Report that is no longer in the care and custody of the University. Tangible Capital Assets which are lost, stolen, or returned to the granting agency are no longer in the care and custody of the University and must be identified for deletion. 

4. In all cases, a Tangible Capital Asset Transfer Change Delete Form must be completed by the Unit’s Asset Administrator. For each request, the form requires the name of the Unit, the date of the transfer, change or delete, the Permanent Tag number and the description of the Tangible Capital Asset (from the Tangible Capital Asset Property Report).

5. For a transfer or change, also complete the applicable details in the “Transfer / Change to” section  of the form. Include the revised information as it should appear on the Tangible Capital Asset Property Report. For example, if the serial number was entered incorrectly, include the correct serial number.

6. For a deletion, also complete the “Delete” section of the form which asks for the reason for deleting this Tangible Asset from the Tangible Capital Asset Property Report.

7. The form must be signed by the Unit Head and submitted to FAS. FAS ensures the necessary adjustments are entered into the Financial Management System to reflect the new information and signs and returns the form to the Unit. In the case of a transfer the form is sent to both the receiving and transferring Units.

8. In the case of Tangible Capital Assets purchased with research or grant funds, additional, specific conditions may have been imposed by the granting agency at the time the grant or funding was awarded. Adherence to these conditions is required. Contact the Research Accounting section of FAS, in these situations.

Review of Tangible Capital Asset Inventory

9. The Asset Administrator must ensure that all forms (addition and transfer/change/delete) are sent to FAS. The Asset Administrator maintains an annual record of Tangible Capital Asset Addition Forms, Tangible Capital Asset Transfer Change Delete Forms, and Declaration and Disposal of Surplus Property Forms, as well as the most recent Tangible Capital Asset Property Report received from FAS.

10. Annually, the Unit should complete a full or partial inventory count of its Tangible Capital Assets to verify the accuracy of the Tangible Capital Asset Property Report. It is the Asset Administrator’s responsibility to ensure that it is checked for accuracy, the accompanying Confirmation Sheet is signed off by the Unit Head, any changes are recorded on the appropriate form and the form is returned to FAS.

11. It is recommended that the Tangible Capital Asset Property Report be checked at various times throughout the year especially if there have been many transactions. As well, the Asset Administrator periodically should review financial accounts for purchases that may cost more than the Tangible Capital Asset Threshold, to ensure the records are accurate and complete.

12. Annually, FAS prepares the Tangible Capital Asset Property Report and Confirmation Sheets for distribution to all Units. Units are expected to review this report to ensure it accurately reflects the changes that were requested by the Unit since the last report was reviewed. The Unit’s requests should be found in the records the Unit maintains for all Tangible Capital Asset actions (addition, transfer/change/delete and surplus) submitted throughout the year. 

13. Upon receipt of the Confirmation Sheet and the Tangible Capital Asset Addition Forms, Tangible Capital Asset Transfer Change Delete Forms, and Declaration and Disposal of Surplus Property Forms, if applicable, FAS adjusts the Tangible Capital Asset Module for any corrections or updates.


Procedure for Declaration and Disposal of Surplus Assets

Approval Date: 2017-05-11

Responsible Unit: Department of Facilities Management

1. Unit Heads complete a Declaration and Disposal of Surplus Property Form, supplied by the Department of Facilities Management (FM), for Surplus Assets and submit it to the Campus Facilities Management unit. This form must be approved by the appropriate Unit Head, or designate.

2. Campus Facilities Management arranges for the removal of Surplus Assets approved for disposal, administers the contract for auction services, and completes financial transactions related to recycling, trade-in and sale by public auction.

3. All sales completed under this procedure will be on the basis of "as is, where is" with no express warranty applied. All sales will be final and cash or a certified cheque will be required at the time of the sale.

4. In all cases where bids on Surplus Assets are tendered, normally the highest bid is accepted. For those tenders where the highest bid is not accepted, approval of accepted bid is required by:

a. the Director of Operations and Maintenance, Facilities Management at the St. John’s campus
b. Associate Vice-President (Administration and Finance) at Grenfell campus
c. Associate Vice-President (Administration and Finance) at the Marine Institute

5. Where a Surplus Asset is of a specialized nature and disposal by public auction is not expected to attract the appropriate category of buyer, Unit Heads may recommend an alternate method of disposal. Such recommendations are made in writing to the head of Campus Facilities Management to verify consistency with past practice and require the approval of the Vice-President (Administration & Finance). Campus Facilities Management provides administrative guidance to complete the disposal action.

6. In the case of disposal of a Tangible Capital Asset, the Permanent Tag must be removed from the Surplus Asset before disposal. Additionally, Campus Facilities Management forwards a copy of the Declaration and Disposal of Surplus Property Form to FAS after it has been approved by:

a. the Procurement Officer at the St. John’s campus
b. The Director of Facilities Management at Grenfell campus
c. The Manager of Facilities and Technical Services at the Marine Institute so that the Tangible Capital Asset Inventory Listing, may be adjusted.

7. In the case of restricted articles or devices storing electronic records, the Procedure for Declaring Restricted Articles as Surplus must be followed. 

8. If the Surplus Asset was purchased with research grants or contract funding, any guidelines for disposal applicable to the research grant or contract must be followed. Contact the Research Accounting section of FAS, in these situations.


Procedure for Declaring Restricted Articles as Surplus

Approval Date: 2017-05-11

Responsible Unit: Office of the Chief Risk Officer

Any Surplus Assets considered hazardous materials, i.e., chemicals, biological, lasers, radioisotopes, radiation generating devices, asbestos, or that may be contaminated with hazardous materials are classified as restricted articles for surplus.

This procedure applies to all hazardous materials items, equipment that has contained hazardous materials, or items that are known to or may be contaminated with hazardous materials. Appropriate decontamination and decommissioning is performed by the responsible Unit with oversight and assistance provided by Environmental Health and Safety, where required. See also Memorial University’s Health and Safety Management System, available here: http://www.mun.ca/health_safety/OHSMS/.

For surplus and disposal of weapons see the University’s Weapons policy. For disposal of controlled goods see the University’s Controlled Goods policy.

1. Instruments which can produce X-rays or other ionizing radiation, or which contain nuclear sources, have restrictions on their disposal and may only be sold, traded, transferred, given away, scrapped, or otherwise disposed of with the written approval of the Radiation/Biosafety Control Officer, who is responsible for ensuring that applicable government and University regulations are followed. X-ray tubes or nuclear sources must be removed from the instruments prior to disposal and handled according to applicable provincial and federal regulations.

2. Items which contain hazardous or restricted articles (e.g., transformers containing oil might be contaminated with PCB’s) may only be sold, traded, transferred, given away, scrapped, or otherwise disposed of with the written approval of the University Safety Manager, who is responsible for ensuring that applicable government and university regulations are followed.

3. In compliance with the Ozone Depleting Substance Regulations applying to refrigeration, air conditioning, and fire extinguishing products, halon gas and fluorocarbon refrigerants must be removed from the equipment before disposal or otherwise sent to an outside contractor licensed to perform this service.

4. To ensure that confidential and other information stored in electronic format is protected, all devices storing electronic data or licensed software, regardless of age or condition, cost of the device or licensed software, or type of lease, must comply with the Data Removal policy and its related procedures.


Procedure for Open Call for Bids

Approval Date: 2019-02-19

Responsible Unit: Department of Financial and Administrative Services

1. Preparing an Open Call for Bids

1.1 All Open Call for Bids notices must be routed through the Department of Financial and Administrative Services (FAS) unless alternate arrangements have been made.

1.2 Procedures for preparing Open Call for Bids Notice:

1.2.1 Obtain bid number, opening time and date from the applicable Tendering Clerk [FAS, the Office of the Associate Vice-President (Administration and Finance) Grenfell Campus, the purchasing office at the Faculty of Medicine, the Tendering Section at Facilities Management, or the purchasing section of the Finance Office at the Marine Institute]. Open Call for Bids normally close a minimum of fifteen (15) calendar days after they are posted.

1.2.2 Open Call for Bids Notice should include:

1.2.3 All open call for bid notices will be advertised electronically with the Service Provider (Bids, Pods, and Merx). Units will be required to forward all bid documents electronically to the person responsible for tendering in accordance with 1.2.1 above.

2. Instructions to Units

2.1 When preparing packages for submission, ensure that each package contains:

2.2 Forward all documents in electronic format as an e-mail with an attachment.

2.3 The deadline for the electronic transfer to the person responsible for tendering is two (2) working days prior to the date the unit wishes to have it appear on the Service Provider's website.

2.4 Upon receipt of the Call for Bids Notice, Specifications and Amendments, all necessary changes will be made and converted to PDF format. Applicable documents including the Invitation to Open Call for Bids Form, the General Terms and Conditions, the Call for Bids Notice, the specifications, the Capital Equipment Purchase Order Addendum if applicable and any Amendments to the General Terms and Conditions will be attached and the complete package will be forwarded to the Service Providers within the required time frame.

3. The Open Call for Bids Process

There are five (5) basic steps to the open call for bids process. They are:

3.1 Development of an accurate set of specifications for the bidders to review. Inadequate specifications will cause problems for the bidders in developing accurate bids and may result in the acquisition of goods and/or services that do not meet the standards desired by the end user or necessitate the cancelling and resubmission of an Open Call for Bids, adding delays to the process.

When developing the open call specifications, ensure that the following points are considered (as applicable):

3.2 Contact the applicable Tendering Clerk to arrange for the review of specifications, if necessary.

3.3 Bid opening. (See Section 4 below).

3.4 Bid evaluation. (See Section 5 below).

3.5 Notification of award to bidders. (See Section 6 below).

4. Bid Opening

4.1 All bid openings must be attended by at least two (2) University representatives: one (1) from the unit making the purchase and one (1) from the unit responsible for issuing the open call for bids. Any member of the public is allowed to attend.

4.2 The attendance sheet must be signed by all present.

4.3 Bids will be opened individually and the following information disclosed:

Each bid along with above information will be duly recorded by the unit representative.

Each bid will be signed and dated by both University representatives.

4.4 Bids will be rejected during the opening process when key elements have not been included, such as:

4.5 Bids not meeting the documentation requirement will be rejected promptly.

5. Bid Evaluation

The following guidelines are used to evaluate bids:

6. Notification of Award

7. Notification of Exceptions - Open Call for Bids Not Required

7.1 "An Open Call for Bids Exception Form" is required to be completed by units to enable the FAS Tendering Clerk to report to the Chief Procurement Officer (CPO) within 15 days of award, pursuant to Public Procurement Regulations, Section 32, all instances where an open call for bids exception was applied. The form is designed to capture those contracts awarded without an open call for bids as allowed by section 6 of the Public Procurement Regulations 2018.

7.1.1 It should be noted that, in order to use an exception specified in section 6 of the Public Procurement Regulations 2018, the Director of Financial and Administrative Services will be responsible for providing approval prior to award. Therefore, it is important that arrangements for approval be made in advance if you anticipate using this clause. Use of this exemption cannot be granted after the award has been made.

7.1.2 Examples of exceptions allowed under section 6 of the Act are:

6(a)(ii) An open call for bids could reasonably be expected to compromise security (3 quotes are still required).

6(a)(iii) Commodity is available from a Public Body.

6(a)(iv) An emergency or situation of urgency exists and an open call for bids cannot reasonable be made in time (obtain more than one quote where the situation allows).

6(a)(v) Only one source reasonably available for the commodity, in the following circumstances:

6(a)(vi) A list of pre-qualified suppliers has been established using a Request for Qualification process (quotations to be requested from all qualified suppliers on the list).

6(a)(vii) Acquisition of a commodity is for the purpose of resale or for incorporation into a product for resale.

6(b)Set rates established by the Public Utilities Board acting under the Public Utilities Act or another Act.

7.2 Timing of Award

7.2.1 FAS will be responsible for gathering all Exception Forms and submitting them to the President for review and signature.

7.2.2 An Exception Form must be fully completed and forwarded to FAS for approval to award a contract without an open call for bids prior to the issuance of the purchase order. This is required in order to ensure the President has approved not performing an open call for bids before the award is made.

7.2.3 When an emergency or situation of urgency exists and pre-approval cannot be obtained, the Exception Form must be received by FAS within 5 days of contract award.

7.3 Completion of Exception Form

Section 1 - This area will indicate the University unit making the award.

Section 2 - This section will briefly describe the nature of the services or supplies purchased. The purchase order number is documented.

Section 3 - This section will contain the complete mailing address of the contractor, supplier or lessor to whom the award will be made.

Section 4 - The full value of the contract, exclusive of taxes but including freight and any other associated costs is to be shown here.

Section 5 - Tick the appropriate exception clause of the Public Procurement Regulations 2018 for which this purchase is exempt.

Section 6 - Clearly outline why an open call for bids was not required. This explanation will have to undergo the scrutiny of the Auditor General's Office, Public Procurement Agency and the general public, so sound justification is critical.

Section 7 - In all cases, the appropriate Unit Head is required to sign the form prior to it being forwarded to the Department of Financial and Administrative Services for review and recommendation to the President or delegate for approval.


Procedure for Procuring Tangible Capital Assets

Approval Date: 2017-05-11

Responsible Unit: Department of Financial and Administrative Services

1. Purchasing of Tangible Capital Assets must occur in accordance with the University’s Purchasing policy and related procedures, in particular the Procedure for Using Purchase Order and the Procedure for Open Call for Bids. The following applies in addition to those procedures. Direct pay or procurement card may not be used for the purchase of a Tangible Capital Asset. POs capture the data required by the Tangible Capital Asset module of the University’s Financial Management system.

2. As per the Trust Funds policy no continuing commitments are to be made on the University’s trust funds. Therefore, Tangible Capital Assets are not to be purchased from a trust fund. If the terms and conditions of a particular non-endowed fund allow purchases of Tangible Capital Assets, they must be purchased under an operating fund and the amount transferred from the trust fund to the operating fund.

3. Upon receipt of goods, the Asset Administrator must ensure the Tangible Capital Asset Addition Form is completed in full, including a complete description, serial number, model number, color, location, etc. It is important, for future reference and identification, to include as much information as possible on this form. A copy should be retained by the Unit and the original forwarded to FAS to be entered into the University’s Financial Management System to subsequently appear on the Tangible Capital Asset Property Report for the Unit.

4. Upon receipt of the Tangible Capital Asset Addition Form, FAS assigns a Permanent Tag number, documents and forwards it to the Unit. Once the Asset Administrator receives a Permanent Tag, it must be placed in a visible location on the Tangible Capital Asset.

5. If a new Tangible Capital Asset has been acquired and FAS did not receive a Tangible Capital Asset Addition Form, personnel in Financial Reporting and Analysis section will request the Unit forward the form.

6. If a Tangible Capital Asset has been donated to a Unit, the Asset Administrator must complete the Tangible Capital Asset Addition Form, indicate that the item was donated and include the estimated fair market value, if known. (See the Gift Acceptance policy). Gifts are added to the Tangible Capital Asset inventory at the fair market value of the Tangible Asset at the time they are received. If the Tangible Asset’s fair market value cannot be determined, the Tangible Asset shall be valued at a nominal amount. All direct costs, such as transportation and installation, associated with the donation shall be included when evaluating the Tangible Capital Asset value.

7. A copy of the Tangible Capital Asset Addition Form should be retained by the Unit and the original forwarded to FAS.


Procedure for Removing a Tangible Capital Asset from University Premises

Approval Date: 2017-05-11

Responsible Unit: Department of Financial and Administrative Services

1. This procedure applies in cases where a Tangible Capital Asset, other than a Surplus Asset, is being removed from University Premises, except those Tangible Capital Assets whose assigned location is off University premises. Such removals must be authorized as follows:

a. If the Tangible Capital Asset is to be removed for ninety (90) or fewer days, the request must be approved by the Unit Head. This approval cannot be delegated.
b. If the Tangible Capital Asset is to be removed for more than 90 days the individual must attach a written submission outlining the rationale for the extended use off University Premises. The request must be approved by the Unit Head. This approval cannot be delegated.

2. The Asset Administrator is responsible for tracking those Tangible Capital Assets removed from University Premises and for following up to ensure they are returned, at expiry of the period of approval. 

3. A Tangible Capital Asset removed from University premises is under the care and control of the person using it. The University’s insurance policies and procedures apply when the Tangible Capital Asset is used in University-related activities.

4. Loss of or damage to a Tangible Capital Asset removed from University premises, must be reported to the Unit Head. Units are responsible for all replacement and/or repair costs that do not exceed the deductible under the University’s insurance policies. For suspected theft or loss of a Tangible Capital Asset containing University information, see also the Procedure for Reporting Suspected Security Incidents. 

5. If the removal is to be extended beyond the period of approval, the individual must request a renewal of the authorization.

6. In cases where the Tangible Capital Asset is being used outside of Canada or the United States, the University’s insurance policies may not apply. Consult with the Office of the Chief Risk Officer.

7. The Authorization for Removing a Tangible Capital Asset from University Premises form must completed.


Procedure for Revenue Distribution from Disposal of Surplus Assets

Approval Date: 2017-05-11

Responsible Unit: Department of Facilities Management

1. At the:

a) St. John’s campus, Facilities Management (FM) directs all amounts generated from the disposal of Surplus Assets to the originating Unit’s operating budget when the amount, less the disposal costs, exceeds $1,000. The amount is recorded by journal entry.
b) Marine Institute and Grenfell campus distribution of net proceeds is under the authority of the campus Vice-President.

2. Certified cheques or cash are required for external sales.

3. If the disposal is for a Surplus Asset purchased with research grants or contract funding, any applicable guidelines for distribution of proceeds must be followed.


Procedure for Transfer of Surplus Assets

Approval Date: 2017-05-11

Responsible Unit: Department of Facilities Management

1. Where a Surplus Asset is being transferred to another University Unit, and that Surplus Asset is listed on the University’s Tangible Capital Asset Inventory Listing, the Unit must complete a Tangible Capital Asset Transfer Change Delete Form, and submit it to FAS so that the custody and location of the Tangible Asset may be updated.

2. The Asset Administrator is responsible for ensuring that a Surplus Asset containing University information or Memorial–licensed software has that University information and software removed when the Surplus Asset is transferred, in accordance with the Data Removal, Information Management and Privacy policies and related procedures.

3. If research equipment is to be transferred by the grantee to another university, then the grantee obtains approval from the granting agency, if required, and final approval from the Vice-President (Research) on recommendation from the grantee's Dean or Director. The Asset Administrator then completes a Tangible Capital Asset Transfer Change Delete Form and submits it to FAS so that the external transfer may be recorded.


Procedure for Using Purchase Orders

Approval Date: 2014-03-13

Responsible Unit: Department of Financial and Administrative Services

1. All items not eligible to be purchased from petty cash or by procurement card should be acquired by issuance of a purchase order. Direct Pay Forms may be used ONLY when no other means to purchase is available.

2. When contracts or tender documents are the controlling document, a purchase order is to be assigned to the document, with the purchase order number as a control point for all correspondence and payments related to the contract or tender. This is required in order to record the commitment in the Banner Finance System and to permit more effective budgeting.

3. Charge Accounts with Suppliers

3.1 It is the responsibility of the unit issuing a purchase order to determine if the particular supplier will grant the University credit. This is done via the purchase order itself rather than formal application for credit.

3.2 The only employees who may issue purchase orders for goods and services are persons authorized by the Dean, Director, Grant holder or Associate Vice-President as applicable.

4. Emergency Purchasing

4.1 An emergency situation will meet one of the following conditions:

4.2 Generally, emergency purchasing procedures will not be used unless such procurement practices would be offset by a corresponding or greater loss to the unit as a result of the delay. Failure to anticipate a need is not, of itself, considered a bona fide emergency.

4.3 When emergency work has to be carried out, the following procedures will apply:

5. Creating a Purchase Order

5.1 The process of creating a purchase order starts with the preparation of a requisition for goods and/or services. This requisition is completed by the employee requiring the goods and/or services. Refer to Procedure for Unit Requisitions.

5.2 When the employee designated to control purchasing within a unit receives a requisition which requires the issuing of a purchase order, he/she is required to:

If the goods and/or services can be obtained internally within the University, the requisition should be forwarded to the appropriate unit, unless prior arrangements have been made with these units to permit external purchasing. Consult the Departments of Facilities Management, Technical Services, Printing Services, Financial and Administrative Services, and Information Technology Services for details on policy and procedure for their respective areas.

If the goods and/or services have to be obtained externally, the employee designated to control purchasing should determine if his/her unit has the appropriate approval authority for the particular purchase. If the items on the requisition are as described in the Special Purchase Approvals List, the requisition will require the approval of the appropriate University office.

5.3 When the requisition has been approved, the purchase may be processed.

6. Pricing of Purchase Orders

It is the responsibility of the unit, in consideration of the specifications for the goods and services set out on the requisition, to select the supplier and to establish the price to be paid in accordance with these guidelines.

6.1 Correct Pricing

It is the responsibility of the employee designated to control purchasing within a unit to ensure that the prices quoted are current prices. The Department of Financial and Administrative Services will request additional approvals if the supplier invoice is not in agreement with the applicable purchase order within specified limits.

6.2 Catalogue

Catalogues are only to be used as a source for obtaining quotations. Pricing purchase orders from a catalogue is not permitted, as generally the prices are not current.

6.3 Freight

All purchase orders should indicate whether a shipment is to be sent freight collect or prepaid. To reduce freights costs, require prepaid freight wherever possible.

Shipping terms are important in identifying when ownership of the purchase takes place, reducing associated trade and customs risks, and defining the transportation arrangements. In most situations the terms should specify that the vendor will retain ownership and liability for the purchase, and pay the shipping cost until the University has physically received it.

Use of the correct shipping term is critical to ensuring the University's shipping requirements are met. Incoterms are internationally accepted commercial terms that determine the roles and responsibilities of the buyer and seller in the sale of goods. The shipping terms DAP (delivered at place) or DDP (delivered duty paid) should be used in most situations.

DAP and DDP means that the seller is responsible for all costs associated with making goods available to the buyer at a named place of destination, cleared for import, but not unloaded from vehicle. These terms can be used for any mode of transport.

6.4 Insurance

If the University is assuming ownership of the purchase at the point of shipping, consideration should be given to insuring the shipment. This is important as some carriers have limited liability and, should the shipment be damaged in transit, the University may only receive token recovery and the unit will be required to withstand the loss.

7. Issuing of Purchase Order

7.1 The unit, having complied with the provisions of these procedures, will issue the purchase order, representing the contract for the goods or services, and will record required delivery, sales tax, freight, and delivery location.

7.2 It is very important that the unit complete all applicable information as to the date required, shipment method and terms, billing terms, payment discount, unit, building including room number, and insurance coverage.

7.3 For commitment purposes the unit must estimate the freight charge involved, as well as the Harmonized Sales Tax.

7.4 Units should not issue several purchase orders for identical items to the same supplier. When the total requirement is known, a purchase order should be issued for that requirement with more than one delivery date given.

8. Other Considerations

The employee responsible for issuing the purchase order must ensure legal and risk implications have been considered and addressed. Such implications include, but are not limited to:

9. Contracts

9.1 The issuance of a purchase order results in a legally binding contract. However, it may be advisable to develop a separate contract document in addition to a purchase order depending on the complexity of the purchase. See the Contract Administration policy.

10. Supplier Invoices

10.1 All supplier invoices are to be sent directly to the Department of Financial and Administrative Services for processing. Exceptions to this procedure should be arranged with the Director of Financial and Administrative Services prior to placing the order. Payment cannot be generated without the original invoice and the receiving completed on the purchase order.

10.2 The supplier's invoice must show all particulars of the transaction. Monthly statements are not acceptable as invoices.

10.3 When an invoice is handwritten, it must bear the signature of the supplier as follows:

10.4 Some expenditures require the Department of Financial and Administrative Services to check, verify and process the invoice prior to obtaining unit approval. These are:

10.6 Internal invoices for requisitions within the University will be processed on receipt by the Department of Financial and Administrative Services. If an invoice appears to be incorrect, contact the unit from which the charge originated and arrange for an adjustment.

11. Standing Purchase Order

In situations where supplies and services are required on a recurring basis throughout the year, a standing purchase order can be issued. This purchase order will state the estimated yearly cost to be incurred and the contract should be awarded in accordance with the Purchasing policy and procedures. All standing purchase orders will be for the fiscal year only. For each purchase on a standing purchase order, complete the receiving for each order received and forward the invoice to Accounts Payable in order to reduce the outstanding commitment.

12. Bulk Purchasing

A unit which is the major user of items needed on a recurring basis may be requested to purchase for the consolidated University requirements. Units requiring these materials should submit their requisition, once it is approved within their unit office, to the unit responsible for the central supply. An interdepartmental billing will be processed by the issuing unit for reimbursement of funds.